Trump imposes a 32% tariff on Taiwan, significantly impacting Kaohsiung's fastener exports to the United States.
- byVic

讀後心得
The United States announced a 32% tariff on Taiwan, affecting the fastener industry in Kaohsiung, including screws and nuts, with an export value to the U.S. of approximately 52.3 billion, accounting for 92% of exports. Businesses are worried that if Vietnam receives zero tariffs, it could lead to order shifting. The Kaohsiung City Government has established a "Countermeasure Task Force for Equivalent Tariffs" to assist businesses in mitigating the impact. Legislators have also stated that they will actively coordinate efforts to reduce the impact.
The United States announced a 32% tariff on Taiwan, impacting the fastener industry in Kaohsiung, including screws and nuts. This industry has an export value of approximately 52.3 billion to the U.S., accounting for 92% of its total exports, with preliminary estimates suggesting it will face the greatest impact. Industry representatives stated that Taiwan's biggest competitors in the fastener market are China and Vietnam. If the zero-tariff conditions proposed by the Vietnamese government gain approval from the U.S., there may be a shifting of orders. To address this challenge, the Kaohsiung City Government has established the "Economic Response Task Force for Equal Tariffs," which not only seeks subsidies from the Executive Yuan but also assists businesses in reducing the impact of tariffs.
The Benzi Industrial Park in Gangshan, Kaohsiung, is the largest concentration of the fastener industry in Taiwan, with products ranging from small eyeglasses to large machinery needing fasteners, laying the foundation for Taiwan to become the third largest fastener exporter globally. Following the U.S. 32% tariff on Taiwan, some business owners expressed concerns, noting that "the first impact may be the suspension of shipments, as customers will wait to see if new tariff policies are introduced and will tend to pause shipments." According to statistics from the Ministry of Finance, the output value of metal products in Kaohsiung is 233 billion, with an export value of 56.4 billion to the U.S., accounting for 24%. The value of fasteners exported to the U.S. reaches as high as 52.3 billion, accounting for 92%.
Industry representatives indicated that Taiwan's competition in fasteners mainly comes from China and Vietnam. Under Trump's equal tariff policy, the tariffs for both China and Vietnam are higher than those for Taiwan, standing at 54% and 46%, respectively. Initially, business owners were not overly worried, but with the Vietnamese government proposing a zero-tariff plan, if negotiations are ultimately successful, it may create a trend of shifting orders. Business owners in Gangshan emphasized, "If Vietnam's tariff is zero, the impact on Taiwan will be very significant."
Although some industry representatives pointed out that the fastener industry has been facing difficulties for some time, this tariff only worsens the situation, some still believe that the issues with fasteners might be related to the previous Section 232 (25% tariff on steel imports), rather than solely targeting this current 32%. Whether it's 25% or 32%, both are significantly higher than the previous rates of 6.5% to 8%.
The Kaohsiung City Government's "Economic Response Task Force for Equal Tariffs" proposed three major measures: establishing an industry connection platform, forming an industry guidance group, and setting up a labor care team to assist enterprises in coping with the impact of U.S. tariffs. Relevant legislators stated they would actively voice concerns at the central government level, striving to minimize potential impacts, especially in support of the screw industry.
With only a few days left until the U.S. tariff policy takes effect on April 9, industry representatives are observing the situation and hope the government continues to communicate and coordinate with U.S. officials. Faced with an uncertain future, they can only adapt as needed.